Paying debt off vs buying more property

2 Replies

I purchased a two family house in NY almost two years ago, but to purchase that home I took a pension loans and a personal loans to cover some of the closing cost ( 70k). There is enough equity for me to take out a loan now. Should I pay the debt I incurred or use that equity to purchase another home.

@Kendrick Victoria My advice is to refinance and pay the debt off, especially if you mean that you borrower money from your 401(k). There is an inverse relationship between growth and stability when you use leverage. In my opinion, buying another home while having those personal and pension loans is too risky. Much better to refinance with a safe equity cushion and save up for the next investment property.